Stock Alert for Popular Inc. (BPOP)
  • Stock Alert for Popular Inc. (BPOP)
  • Stock Alert for Popular Inc. (BPOP)
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    Trade Alert for Popular Inc. (BPOP)

    Popular Inc. (NASDAQ: BPOP) is a diversified, publicly-owned financial holding company.  The Company has operations in Puerto Rico, the continental United States, and the U.S. and British Virgin Islands. In Puerto Rico, it provides retail and commercial banking services through its principal banking subsidiary, Banco Popular de Puerto Rico (BPPR), as well as auto and equipment leasing and financing, mortgage loans, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the United States, the Company operates Banco Popular North America (BPNA), including its wholly owned subsidiary E-LOAN. BPNA focuses efforts and resources on the core community banking business. BPNA operates branches in New York, California, Illinois, New Jersey and Florida. E-LOAN markets deposit accounts under its name for the benefit of BPNA. As part of the rebranding of the BPNA franchise, some of its branches operate under a new name, Popular Community Bank. It has a 49% interest in EVERTEC, which provides transaction processing services throughout the Caribbean and Latin America, including servicing many of BPOP’s system infrastructures and transaction processing businesses.

    Share Statistics (29-Sept-11)   FY

    2009

    FY

    2010

    %

    Chg

    Q4

    2009

    Q4

    2010

    %

    Chg

    Symbol BPOP Revenue, $Mn
    Current price $1.52 Gross marg.
    52wk Range: $1.30-$3.59 Oper. margin 9.5% 14.6%
    Avg Vol (3m): 10,939,100 Net margin
    Market Cap. 1.56B              
    Shares Outstanding 1.02B EPS, $ 0.18 -0.04 -122.2% -0.28 0.11 -139.3%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    As of September 29, shares of BPOP gained 11.0% in the last five days, though the stock dropped 26.6% in the last month.  Year-to-date, the stock is down 45.7%.

    Shares of the Puerto Rico-based bank holding company gained as much as 6% yesterday on volume of over 4 million shares. The stock has a 52-week range of $1.30 – $3.59.  It is currently trading below its 50-day moving average of $1.86 and below its 200-day moving average of $2.58.

    BPOP early this month declared monthly cash dividends on its outstanding shares of Non-cumulative Monthly Income Preferred Stock.

    The Company announced a monthly cash dividend of $0.1328125 per share of 6.375% Non-cumulative Monthly Income Preferred Stock, 2003 Series A, payable on September 30 to holders of record as of September 15, 2011; and a monthly cash dividend of $0.171875 per share of 8.25% Non-cumulative Monthly Income Preferred Stock, Series B, payable on September 30 to holders of record as of September 15, 2011.

    Source: https://www.snl.com/irweblinkx/file.aspx?IID=100165&FID=11690767

    Financial Summary

    BPOP reported a net income of $110.7 million for the quarter ended June 30, 2011, compared with net income of $10.1 million for the quarter ended March 31, 2011, and a net loss of $44.5 million for the quarter ended June 30, 2010. Pre-tax income for the quarter ended June 30, 2011, amounted to $72.6 million, compared with pre-tax income of $157.4 million for the quarter ended March 31, 2011, and a pre-tax loss of $17.3 million for the quarter ended June 30, 2010.

    For the six months ended June 30, 2011, the Company’s s net income and pre-tax income totaled $120.8 million and $229.9 million, respectively, compared to a net loss and pre-tax loss of $129.5 million and $111.6 million, respectively, for the same period in 2010.

    Source: https://www.snl.com/irweblinkx/file.aspx?IID=100165&FID=11483583

    Financial Strength (29-Sept-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 0.00 0.25 0.77
    Current Ratio (MRQ) 0.00 0.50 1.14
    LT Debt to Equity (MRQ) 86.36 47.86 79.58 109.07
    Total Debt to Equity (MRQ) 155.02 180.63 171.24 145.95
    Interest Coverage (TTM) 0.00 0.34 24.21

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    BPOP is below its 20-day moving average. This bearish sign is even more significant because the moving average is also trending lower.

    BPOP’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility.

    The MACD for BPOP currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Sept29-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    First Bancorp FBP 2.88 61.35M n/a n/a 0.16 0.16
    The Bank Of Nova Scotia BNS 51.72 56.16B 10.82 10.51 n/a n/a
    Foreign Regional Banks Median       6.74 n/a 1.45 n/a
    Popular Inc. BPOP 1.52 1.56B 6.08 4.61 0.80 0.84

    Source: Thomson Financial

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